I was just asked to do a little undercover work by my sister on behalf of a developer friend of hers who has some units for sale in Meath…
My job was to ring the EA and try obtain info on his developement which while for sale was not due to have the first phase completed til Spring 08… The developer is not happy with his EA’s attempts at ‘pushing’ his development…
There is 2 near identicle developments in the same small area and this EA is the agent for both… Seems like they have a lot of cancellations on the existing deleopment which is now nearly completed and they are pushing any interest from the other development over to fill these cancellations!!! Obviously this is why there is little sales/interest on my sisters friends development… So armed with some surveillence he’s off to have it out with the EA…
The EA has an obvious conflict of interest in being the sales agent for two competing developments. In this situation, everbody loses except the EA. Even the buyers dont get the chance to play competing sellers off against each other for reduced price.
Theres only one way to solve this and that is for the developer to get a new EA asap.
You would think that the developer when getting a EA to sell hes estate that is going to be finish until 6 months after another estate in the same area would get a different EA?
The EA already knows that there are people buying into the first estate and no one wants to be the only person living in a estate that is not finished and will not be finished by any developer until there is a least 80% of the homes occupyed.
Its in the EA’s interest to sell all the house in the first estate,well it makes sense to me
Sorry but your developer friend did not do hes homework properly and he is now going to pay the price it seems
Like most new developers in the last few years where you could sell the hold estate off plans he got caught up in the property craze,thought he was on a sure thing
Both developments are to the most part identicle, 2 and 3 bed town houses within a couple of hundred yards of each other, priced exactly the same.
The EA in fairness did mention both developments but was very much pushing the current units and seemed to mention that there was a number of cancellations and she expected more in the next few weeks, which I thought was pretty bad logic on her part… Surely anyone with a real interest would have been put off by the numerous mentions of cancellations…These cancellations I felt were being offered to me as a bonus almost, a kind of ‘you could be lucky and get a cancelation cause you didn’t buy soon enough’
I don’t know this developer at all, so couldn’t judge him on his business acumen but I would have to agree that putting his development in the hands of a EA with a competitor on his books made little sense… But I’m sure in the recent few years of panic buying such poor business decisions mattered little??
So while for the last few years any ould eejit with the resources could develop land and make a nice few million, nowadays only the strongest will survive and there will be no room for guys who make silly mistakes like what this particular guy has done!!
Am I right in saying that by buying into the alternative development through a cancellation you would be looking at “imminent” (from your OP) possession, while your sister’s friend’s development is at least 6-9 months from scheduled completion?
Then doesn’t that make sense? “I could sell you this one, on which you would have to sign a contract, pay over money, but would have to wait for some undetemined completion expected in mid 2008. Or I could offer you this one which is nearly completed”
That’s what I don’t get about this development malarky as it is practiced in Ireland (yes Ireland is different). As a buyer I don’t want to know about something that may or may not be built in a year or two’s time for which I have to fork over money and make a legal committement.
Correct, it makes perfect sense to push the finished development… I just don’t know why she was selling the fact it was a cancellation…Surely she could have just said some were still available!
The bigger point to me at least would be that its another change in the market where EAs are now having to almost pick one development over another, whereas in the past they could sell any amount of units from various developers